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Fixed costs – expenses that are “set in stone” like your rent or mortgage

Flexible costs – necessary expenses like groceries, internet, phone bills. These can usually be reduced, but not eliminated.

Extras – expenses that go above the cost of living. These might be convenience items, hobbies… expenses that allow you to enjoy life a bit more.

This article will target the ‘extras'. You might find that you have been buying things, subscribing to services or paying membership dues that you don't really NEED. If you could do without some of these things, you have an opportunity to ELIMINATE it! …not just reduce it – instant money in your pocket! When Lauren and I started tracking expenses, we were amazed at how many items were extras. In the first month alone, we were able to cut about $200-$300 with hardly any effort… we just lived without a couple luxuries but noticed no difference in our standard of living.

Here are some examples of costs that you might not realize are draining money from your wallet:

Please keep in mind that I am not advocating eliminating ALL of these expenses. Lauren and I firmly believe that can enjoy life on a budget. What things are considered ‘extra' but you are really passionate about? You might want to keep some of those. Setting your budget realistically and allowing yourself to enjoy a few things will increase the chance that you will stick with it.